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Pound slips versus dollar after strong U.S. data lifts the greenback

GBP/USD fell from near 1.3545 to around 1.3375 as U.S. retail sales and lower jobless claims supported expectations the Fed could still hike later this year.

Reported · Written up by our desk · Major Pairs

The British pound trimmed gains against the U.S. dollar as a mix of stronger U.S. indicators boosted the greenback and added to risk aversion, with the GBP/USD pair dropping after trading near 1.3545.

FXStreet said U.S. retail sales rose 0.2% month over month in June, gasoline prices eased from $4.61 in May to $4.18 in the last month, and jobless claims for the week ending July 11 fell to 208K from 216K, below the 217K increase expected.

The dollar also gained support from the U.S. Federal Reserve Beige Book, which noted that employment rose on balance in July, alongside continued Middle East hostilities that raised energy-supply disruption concerns. FXStreet cited Prime Terminal data showing the odds of a rate hike are very slim for the July meeting, with about a 73% chance rates stay unchanged, but nearly 57% odds for an increase at the October 28 meeting.

In the UK, the economy grew 0.1% in May after a -0.1% contraction in April, while a three-month rollover climbed 0.7% to May, matching an unchanged prior print and beating expectations. The report also noted expectations for incoming Prime Minister Andy Burnham to appoint Shabana Mahmood as finance minister, aimed at easing fiscal-discipline concerns.

Latest closeGasoline (RBOB) $3.100 ▼3.9%|GBP/USD 1.354 ▲1.4%

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